TribLIVE

| Home


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Pittsburgh touts early payment of debt tied to Oakland development

Daily Photo Galleries

Tuesday, Nov. 6, 2012, 12:40 p.m.
 

Mayor Luke Ravenstahl said Tuesday that the city paid off the $5.25 million tax-increment financing plan for the Schenley Center project in Oakland five years earlier than scheduled.

TIFs use the promise of future increases in property taxes to pay for sewers, roads and utilities at sites where development is occurring.

Schenley Center includes a 176-room Residence Inn extended-stay hotel, the 156-room Schenley Gardens Assisted Living Center and a 273-space parking garage. The $42.2 million project was built in 1998.

In December 1997, the city approved the TIF to partially fund the parking garage and site preparation.

Before the TIF, the Schenley Center parcels generated $1,531 annually in taxes to the city, Allegheny County and Pittsburgh Public Schools, the mayor's office said. During the TIF, the taxing bodies collected $204,336 annually. Now that the TIF debt has been paid, the taxing bodies will collect $612,232 annually in taxes.

TIFs have come under fire because money backed by public subsidies can be lost if the developer pulls out. They also can fail to generate enough tax revenue to cover loans, as in the case of two TIF deals that built The Mall at Robinson.

The financing tool's most high-profile failure in Pittsburgh came when the city used it to entice Lazarus to open a department store Downtown in 1998. Lazarus closed in 2004 because of poor sales.

 

 
 


Show commenting policy

Most-Read Stories

  1. Rossi: Fleury is, and will remain, Penguins’ soul
  2. Nearing season’s midpoint, Steelers still have issues to sort out
  3. Steelers lookahead: Colts QB Luck becoming one of NFL’s elite
  4. Testing legs, giving backup goalie a chance are Penguins’ priorities
  5. Rossi: Fleury is, and will remain, Penguins’ soul
  6. 5 airports to handle all U.S.-bound travelers from Ebola-stricken nations
  7. Gorman: Coaching search starts at Blackhawk
  8. Penn State receiver Lewis looking to rebound after demotion
  9. The Wine Cellar: Chairman’s Selections highlight Italian wine values
  10. NA’s Davison, Mt. Lebanon’s Potts hope to stick with WPIAL favorite Schwartz
  11. HS highlight reel: Hearings scheduled before WPIAL board
Subscribe today! Click here for our subscription offers.